A market on the move: the winning appeal of the Algarve
Golf and golden beaches first brought international property buyers to Portugal’s southern coast but it’s the increasingly sophisticated outdoor lifestyle that keeps them there
Portugal’s sunny southern region of the Algarve is a well-established holiday home favourite, its popularity based primarily on 150-miles of sandy beaches, green countryside and the promise of 300 days of annual sunshine. Today, this natural beauty has been added to with an increasingly sophisticated infrastructure of improved roads and airports, international schools and a constantly evolving choice of restaurants, bars and sports facilities.
That’s one reason why the Algarve was a star performer in the Prime International Residential Index (PIRI) 100. As reported in Knight Frank’s 2024 Wealth Report, the Algarve eased into the top five luxury destinations surveyed for prime property increases, recording a rise of 12%.
“The Algarve has always been a popular holiday destination, but a significant difference now is that we see so many more families making a permanent move,” says Alex Koch de Gooreynd, a partner in Knight Frank’s International Residential Team. “It’s a trend that started some time ago but accelerated after Covid lockdowns, helped by the Algarve’s outdoor lifestyle. The quality of life is outstanding, sunshine virtually guaranteed for 10 months of the year, affordable living costs and good connectivity through Faro or, a little further away, Lisbon airport, including now flights from the USA. Best of all, a true year-round community has become established, something that’s hugely appealing to new arrivals.”
The areas to note
The Algarve’s Golden Triangle, edged by Vilamoura, Quinta do Lago and Almancil, is the prime location for buyers, and the best of the best within that area, says Suzana Bento, Managing Director of Knight Frank’s associates Mapro Real Estate, is Quinta do Lago.
“This golfing and sporting resort 15 minutes from Faro airport, created over 50 years ago, has a uniqueness that puts it above all others,” she says. “The quality of the facilities are outstanding, with four golf courses, tennis, padel and cycling facilities and the Campus, a multi-sports training centre that caters for families and elite athletes.”
Properties at Quinta do Lago range from apartments and townhouses to substantial detached contemporary villas. One of the newest developments is One Green Way, at the entrance to Quinta do Lago.
“People frequently ask about security and they appreciate the peace of mind that a fully serviced and gated development like One Green Way provides,” says Koch de Gooreynd. “Overall, in the Algarve, we’re seeing an increased interest in contemporary properties, or refurbished ones that run efficiently. People are much more focused on having a property that’s easy to manage.”
Other areas to consider include Santa Bárbara de Nexe and the hillsides around Loulé, still within 20 minutes of Faro airport but offering better value properties, less tourism and cooler summer temperatures. Look too at the western Algarve one hour from Faro airport and 2.5 hours from Lisbon. That includes Monte Funchal and the pretty village of Praia da Luz which has had a good facelift and where family houses with gardens and pools in Reserva de Luz, overlooking the ocean, cost from €1,800,000.
This sporting life
There are few places better for an outdoor life. The Algarve is one of Europe’s premier golfing destinations with close to 40 smooth-as-baize golf courses alongside excellent padel and tennis courts, notably at Vale do Lobo, Quinta do Lago, Vilamoura and in Praia da Luz. There’s a growing emphasis on cycling too, with the challenging hills and quiet roads of Monchique, north of Portimão, a popular destination.
There’s no shortage of Atlantic beaches, most backed by the Algarve’s distinctive red cliffs and green pine trees. Ones to bookmark include Praia do Ancão and Praia do Garrão between Quinta do Lago and Vale do Lobo while the finest hidden beaches, half empty even in August, are on the west coast of the Algarve. Don’t miss Praia Bordeira and, for an unforgettable sunset view best enjoyed over a chilled beer, take a seat at Taberna do Gabriel II on Praia da Amoreira.
Meals to remember
From five-star dining to casual beach bars, the choice of restaurants and bars covers all the bases. Suzana Bento’s top choices include Unami, a sophisticated sushi restaurant that’s the latest addition at Quinta do Lago, Parilla Natural, a steak house in Almancil and Sr. Frango, serving chicken piri piri, also in Almancil. In the western Algarve, Boaty’s Tapas Café on Praia de Luz’s beach has set a new standard of cool. Head up to the first floor to Zazu Beach Club and take in a cocktail on the roof terrace. For the freshest seafood on the cliffs, book a table at Camilo Restaurant in Lagos.
Need to know
“The announcement of the end of the Golden Visa for property purchases has not had a dramatic effect on the Algarve market because it was principally of interest to investors in Lisbon,” says Koch de Gooreynd. “It’s a similar story with the Non-habitual Resident scheme, a tax incentive scheme which ended in January 2024. Only around 10% of our clients in the Algarve took it up and of them, around half only learned about it after they chose to buy in Portugal.”
Property purchases are straightforward though it’s important to understand that many properties are owned through a corporate structure. Mortgages are becoming easier to obtain, with more banks willing to lend.
“The Algarve remains a favourite location because of the variety it offers across restaurants, properties and activities,” says Koch de Gooreynd. “Yes, the beaches are superb but travel just 10 kms inland and you’ll find quiet, rural countryside. It’s another prime example of the wonderful Algarve lifestyle.”